Definitions for "Impaired Risk"
See Sub-Standard Risk.
In life insurance underwriting, an impaired risk is an individual who has an unfavorable health condition or history or other factor that makes him or her an above-average risk for coverage. This person may be asked to pay a higher premium, accept a reduced amount of coverage or be declined altogether for insurance.
A risk that cannot meet the normal health requirements of a standard insurance policy.
One which presents an unduly high probability of loss.